MUSCAT: Oman’s output is expected to contract by 4 percent in the current financial year due to the oil prices crisis and the coronavirus pandemic, while GDP is expected to grow by 2 percent next year, according to a report by the World Bank.
The World Bank, in its latest Global Economic Prospects report for June said the steep fall in global oil and export demand curtailed exports for oil producers, with
adverse repercussions for non-oil sectors.
“Oman’s Gross Domestic Product (GDP) is expected to grow by 2 per cent in 2021 compared to a contraction of 4 per cent this year due to the repercussions of Covid-19, and decrease in oil prices,” World Bank said.
Read More
- GCC tourism economy climbs to $254.7 billion in 2025
- Oman hotel revenues fall 11% to RO 156.5mn as guest numbers decline
- Oman’s Duqm Refinery hits 110% capacity as revenues reach $7 billion
- Oman keeps inflation contained at 2.9% despite global price pressures
- Oman Transport Ministry spends over RO188 million on development projects in nine months
In the report, World Bank has also predicted that the global economy will see its worst recession since the end of the Second World War due to the pandemic this year.
“The COVID-19 pandemic has, with alarming speed, delivered a global economic shock of enormous magnitude, leading to steep recessions in many countries. The baseline forecast envisions a 5.2 percent contraction in global GDP in 2020- the deepest global recession in eight decades, despite unprecedented policy support,” it said in the June update report.
